Indian plastic pipes industry eyes growth amid FY25 challenges

The Indian plastic pipes industry faced multiple headwinds in FY25, including subdued infrastructure spending, liquidity constraints, and fluctuating polyvinyl chloride (PVC) prices, according to a recent report by JM Financial.

Traditionally fragmented and agriculture-centric, the sector has increasingly shifted towards a more organised ecosystem serving water supply, sanitation, plumbing, and industrial applications. Despite the difficult operating environment in FY25, the report noted that near-term support is expected from channel restocking and stabilising PVC prices, which touched around INR 79 per kg in September 2025.

PVC prices, a critical input cost for manufacturers, have shown sharp volatility in recent years. On the global front, muted construction activity in China and developed markets curbed demand, while oversupply from major exporters such as China, South Korea, and Taiwan resulted in aggressive price competition. Historically, PVC prices have risen at a compound annual growth rate (CAGR) of about 2 per cent over the past 25 years. However, the segment recorded a ~4 per cent CAGR decline during FY20–25. In the last four to five months, prices have recovered by nearly INR 7 per kg to reach INR 79 per kg in September 2025, though they remain well below peaks seen in FY22.

Looking ahead, structural demand drivers are expected to support growth. Government initiatives including the Jal Jeevan Mission, Swachh Bharat Abhiyan, and Housing for All, coupled with rising agricultural and replacement demand, are projected to accelerate adoption of plastic piping systems. JM Financial estimates the size of India’s plastic piping market at INR 600–650 billion, with growth forecast at 10–12 per cent CAGR over FY25–30.

The report further highlighted that stabilising PVC prices are likely to restore distributor confidence, ease inventory pressures, and aid margin recovery for organised players. In addition, the proposed implementation of Bureau of Indian Standards (BIS) quality norms for PVC imports, expected by December 2025, could provide protection against low-quality imports and strengthen domestic pricing power.